JPMorgan Chase, Citi and Wells Fargo Lose $5,361,000,000 To Bad Loans in One Quarter As Customers Fail To Pay Debt

JPMorgan Chase, Citi, and Wells Fargo have collectively reported a significant loss of $5.361 billion from customers who are unable to repay their debts. This revelation came to light in their Q2 2025 earnings reports, where the three major banks disclosed substantial losses from “net charge-offs,” which are loans that have been written off as uncollectible after all efforts to recover payments have been exhausted.

Among the three banks, JPMorgan Chase reported the highest level of charge-offs at $2.4 billion, primarily attributed to bad credit card debt. Citi followed with $2.234 billion in bad loans written off, including $1.889 billion from its retail credit card portfolio. Wells Fargo recorded $977 million in net charge-offs, mainly driven by $818 million in sour loans from its consumer banking and lending segment.

Recent data from the Federal Reserve Bank of New York indicates that US credit card balances had reached $1.18 trillion by the end of March 2025, highlighting the significant impact of these charge-offs on the banking industry.

Despite the losses, Citi reported a $225 million decline in net credit losses quarter-over-quarter, while Wells Fargo saw a $12 million decrease in net charge-offs over the same period. In contrast, JPMorgan witnessed an increase of $179 million in net charge-offs over the three-month period.

In terms of earnings, all three banks reported strong results in Q2, with JPMorgan, Citi, and Wells Fargo generating $15 billion, $4 billion, and $5.5 billion in net income, respectively.

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This article was generated using Midjourney’s image.